I’m a ‘bottom-up’ analyst. Instead of betting on which industry might outperform and then screening for names in that sector, my analysis begins with a stock that has a promising story—which many do right now—explains Linda McDonough, editor of Profit Catalysts Alert.

But stocks don’t live in a vacuum. They get churned by the market. My job as a stock picker is to stress test each stock to find its true value. This approach can lead to finding incredible bargains.

Whenever a stock doesn’t trade as I expect it to, I sharpen my shovel and dig deeper. SolarEdge (SEDG) has been one busy stock.

The company reported stunning numbers on February 3. Yet the shares dropped as low as $23 per share. A rebound brought it up to $26, still below where it was before the sparkling report.

I immediately called the company and was able to connect with Mike Funari, who leads investor relations.

SolarEdge’s decline was coincident with a poor report from SolarCity (SCTY), one of its largest customers. It seemed that investors were worried that SolarEdge would be at risk due to SolarCity’s shrinking cash balance.

Funari assured me that none of SolarEdge’s receivables are overdue and that the company sees “no need for reserves against any of its receivables.”

A reserve is a charge in the current quarter if a company is worried a customer will not pay its bill.

Even more comforting is that all of SolarEdge’s receivables have been backed by American International Group (AIG) so that even in the unlikely case of a customer default, the insurer picks up 90% of the tab.

SolarCity represents a smaller portion of SolarEdge’s total revenue than it did before. As revenue from new customers explodes, SolarEdge depends less on growth from SolarCity for its success.

Meanwhile, SolarEdge’s new commercial-grade products and battery storage products help to diversify its revenue base from residential solar, the market investors are most concerned about.

I remain incredibly bullish on this stock. Earnings are on track to more than double this year and then grow at least 35% in 2017.

A stock trading with an 11 P/E that is expected to grow an average 67% in the next two years is as rare as the sun on a snowy winter’s day.

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